This article provides an in-depth, longitudinal analysis combining real-time and retrospective data on a set of Mondragon's industrial cooperatives that are organized as international groups. We examine the life cycle of these international cooperative groups, which is expected to evolve differently to that of small-and mediumsized cooperatives that operate exclusively on a local scale. The article is theoretically informed by the cooperative life cycle theory, as well as by recent insights from the degeneration and regeneration theses. Our analysis yields an intricate picture of the evolution of cooperatives faced with a 'grow-or-die' dichotomy. On the one hand, our findings reject the highly simplistic and deterministic view of the degeneration thesis by demonstrating that these cooperatives can mobilize resources to revitalize cooperative values and practices. On the other, we find that regeneration may not occur in a consistent, sequential fashion as the previous literature suggests, but rather degenerative and regenerative tendencies can occur simultaneously, even leading to long-lasting, unresolvable situations. In light of this, the article asks future research to draw on power-aware and politically informed approaches for further understanding of how cooperatives manage the tensions at each organizational stage of their life cycle, and of which organizational actors benefit, and how, from reversing some degenerative tendencies while maintaining others intact.
This paper outlines the internationalisation process of cooperatives in an economic environment determined by economic globalisation. The analysis is focused on the Mondragon Cooperative Corporation (MCC) in the Basque Country which is a point of reference for participatory enterprises all over the world. MCC is currently adapting to changing market conditions and pursuing a strategy of direct investment (joint ventures, greenfield investment and acquisitions) in priority international markets. Thus, the first part of the study is about the current situation: the *
The Mondragon Cooperative Group reflects the effort to combine the basic objectives of business development in international markets with job creation, the use of democratic methods in the organisation of the business and a commitment to the development of its surrounding community. The multi-nationalisation of Mondragon cooperatives entails new dilemmas, paradoxes and contradictions regarding these objectives. This article analyses the case of the Mondragon cooperativemultinational Fagor Electrodomésticos. Following years of international expansion via foreign direct investment, the recent recession forced Fagor to institute radical job restructuring processes, both in the plants of the parent company in the Basque Country and in its European subsidiaries: the French company Fagor-Brandt and the former communist Polish firm Wrozamet. Finally, the Basque domestic appliance company, Fagor, declared bankruptcy in November 2013. Analysing the economical and organizational problems during the downfall of Fagor, and the measures taken to downsize employment in the Basques factories and in the foreign subsidiaries, helps us further our knowledge about the organisational characteristics of the Mondragon multinationals and reflect on the possibilities of extending the cooperative model to subsidiaries.
This article presents a case study of the rise and fall of the Mondragon cooperative Fagor Electrodomésticos (1959-2013). Fagor, after playing a key role in the creation of the Mondragon cooperative experience, had been transformed into a multinational corporation competing in the global home appliance market. Given Fagor’s role as a leading cooperative, the general question of the viability of workers’ cooperatives is also at stake in its failure.
Drawing on qualitative research and longitudinal data on two Mondragon multinational cooperatives, the authors examine the multinational expansion of these coops and the diffusion of the cooperative model's employment practices to their subsidiaries in Brazil, China, Slovakia, France, and Poland. The results show that international expansion can radically transform the organizational architecture of coops and exacerbate dilemmas about how to put their hallmark values into practice. Moreover, the findings reveal a fragmented and inconsistent introduction of the cooperative model overseas. Work organization practices are homogeneous across the various sites, whereas job security, training, and pay equity practices are not. Core cooperative practices (i.e., employee participation in ownership, profit sharing, and general management) have not been implemented in any foreign operation. The study illustrates how market influences, institutions, and macro-and micro-politics shape the transfer of employment practices. O ver the past two decades or so, an increasing range of organizations that are not simply capitalist firms driven by shareholder value, such as state-owned enterprises, firms controlled by sovereign wealth funds,
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